>> have you to children. >> i know. >> how much time do we have? >> none. >> thanks, andy, pab, bill schulz, that does it for me. see you later. joining us. >> bret: gingrich and romney touch on touchy subjects on the campaign trail. this is "special report." ♪ ♪ good evening. i'm bret baier. two men generally considered leaders in the republican presidential race are struggling for clarity while on the campaign trail. in the 2012 race featuring multitudes of camera, microphone of cell phone, on guard for any hint of inaccuracy or inconsistency, every word is dissected. here is chief washington correspondent james rosen. >> this country. >> stumping in iowa, governor romney wrestled anew with how to hand the illeg immigrants

in this country. >> they might have a transition time to allow them to set affairs in order and go back home and get in line with everybody else. >> but romney did not say how he would bring about the voluntary exodus he envisioned. the former massachusetts governor all but assured the illegals here now he would not use the full weight of the executive branch to force them out. >> was an jut let for the jewish channel where he cast aspergess. >> there was no palestine as a state. it was it's part of ottoman empire. we invented the palestinian people, who are arabs and historically part of the arab community. >> i don't think right wing social engineering is more desirable than left wing social engineering. >> he reminded republicans of harasssy committed in may when he disparaged the spending

plan put forward by the g.o.p. leading voice on budget issues, congressman paul ryan. >> it's a good deal of time with congressman ryan. in is a place where speaker gingrich and i disagree. >> the ryan flab was one in a series of low moments with the disclosure of his six-figure credit line at tiffany's and the departure of high level campaign staff that led many to write gingrich off, including an irate voter in iowa. >> you are an embarrassment to our party. >> sorry you feel that way. >> a string of impressive debate performances. including a rebuke of the media. >> put aside the gocha questions. >> this is about bringing down herman cain. >> i don't know that you count running for the senate, running for governor and then president for six years i don't know if that makes him a career politician or not. i'll let you decide. >> fueled a once unthinkable

resurrection of newt gingrich. operatives are split on whether gingrich will keep the current hold on the g.o.p. voters. >> the number one thing they want to do is win back the white house. >> they start to realize gingrich may hurt their chances you could see luster fall off of newt. >> he is likely to win iowa, only 25 days away. then the question is the expectations. how big is the win? >> finally, texas governor rick perry had another option moment or two today. in an interview with the "des moines register" editorial board he talked about the eight judges on the supreme court, but the high court has nine justices, not eight judges. when perry seeked out the activist of the liberal justice sonia sotomayor he struggled to remember her name and ultimately went with motamayor. >> bret: thank you. two-third of the participants in the latest fox news poll believe there should be a path to citizenship for illegal immigrants.

19% of them should be, all of them should be deported1 3% in favor of a guest worker program. governor of alabama says he is working to clarify and simplify the tough immigration law. opponents to the measure are welcoming the statement by republican robert bently. federal courts have allowed part of the law to go into effect. other parts are on hold spending the challenges. republicans who feared they may be pinned to the political map by president obama wrestling over a payroll tax cut, executed a reversal of sports. chief congressional correspondent mike emanuel tells us the g.o.p. leaders and some democrats think they may have found a way to come out on top. >> the house republicans unveiled a $192 billion package today that include the fully paid for extension of the payroll tax holiday. reform unemployment insurance program and two-year extension of the medicare doc fix. it includes forcing administration to allow the keystone xl pipeline project to be built.

a move designed to win over the reluctant republicans. >> i had one or two of the colleagues saying i was on the bubble. but if this is in there, we need this. i'll vote for it. >> to pay for the overall package, nearly $80 billion would be saved by extending the salary freeze for the federal workers. changing the medical co-pay structure for civilian federal retirees and holding speck tar moction and other reform. the top house democrat blasted inclusion of the pipeline in the bill. >> a poison pill design to sink the payroll tax cut. the president said he will veto the bill. he will veto the bill. >> only the president didn't say "veto." >> any effort to tie keystone to payroll tax cut i will reject. >> the leading senate republican says mr. obama could lose more than he gai

gained. >> he would be responsibl respof he vetoed the legislation. i predict he will sign it. we will get some jobs out of this, too. >> the new fox news poll shows majority of americans disapprove of the job performance. the poll reveals a disapproval of congress is up to 83% from 80 last month. still senate majority leader harry reid said, "if the house sends us their bill with the keystone in it, they are wasting valuable time because it will not pass the senate." cornyn says the package will likely get 60 votes in the senate. >> i do. democrats wille split. a lot of organized labor groups are more this because they recognize jobs coming out of it. >> the support expected to come from the democratic lawmakers along the pipeline route, including the democrats from montana, baucus and tester, nelson from nebraska and a landrieu from louisiana. democrats oppose the pipeline are going back to the drawing

board to develop alternative plan. >> a political pressure point is relieved for now. jim angle looks at the resolution to a very acrimonious dispute. >> the national labor relations board dropped a lawsuit against aircraft giant boeing today over the plan to open a new plan in south carolina a right to work state, meaning the workers don't have to join the union. nlrb filed suit after the headquarters at washington state insisted on it in what many considered aful in argument. >> this -- a novel argument. >> this is delineation. the board never before attempted to assert a restriction. the board doesn't have the power to do that. >> it's fortunate to have more demand than it can meet. the repeated strike by workers and plan in washington state.

it decided to expant. >> no workers in washington state lost their job. just the opposite. they expanded hiring in washington state. >> a republican is concerned it's linked to negotiation with boeing that ended with the unions getting what they want prompting them to withdrawal a complaint about south carolina. >> no company should have to negotiate satisfy the union to not have the nlrb using the full weight and expense of taxpayers against them. >> president obama didn't have much to say. >> oh he said they should find ways to work together to find jobs. >> boeing said it's grateful for the support to is up part the legitimate right of businesses to make the business decisions.

jim demint said the nlrb has obligation to protect right of workers to join or not join unions but under the leadership of president obama appointee, the nlrb is a tool of the union bosses. analysts say the unions looking for a face-saving way to back down. >> the idea of charging someone for jobs doesn't look good. >> one republican called a suit nothing more than a shameless campaign to bully an american employer saying the nlrb should protect right of workers not bolster the bargaining position of the unions. several lawmakers are calling for an investigation in to what they call the collaboration between the nlrb and the unions. bret? >> thank you. >> another of the fox news polls found one in 20 participants considers the economy in good shape. 94% say it's fair or poor. but 53% say things will be

beter a year from now and 53% say it's going to be worse. some congressional staff members give meaning to the phrase "political party." that is later in the grapevine. up next, are we

♪ ♪ >> bret: in world news, more than 2,000 afghans rallied to mourn 56 people killed in the deadly bombing of a shiite shrine in kabul tuesday. many people blame that attack on pakistan. meanwhile , across the border in peshawr another rally to condemn the u.s. over nato airstrikes that killed 24 pakistani soldiers last month. activists in syria say security forces killed at least nine people today, including two children. this is said to be video from the city of homs thursday that purports to show a government tank fires in a residential area.

the family of a retired f.b.i. agent is begging for his release, in another of long line of issues between the republic and u.s. correspondent jennifer griffin looks at whether we are already at war with iran. >> the capture of a downed u.s. sentinel drone reveals that the u.s. was flying spy missions from air base in afghanistan, actively gathering information over iran. the latest in a series of mysterious events including explosions and assassinations. targeting iran nuclear scientists. some argue the covert war against the nuclear program is unrway. it began more than a year ago. first, a cyber attack on natan, 1,000 centrifuges destroyed by the network. then, a dozen mysterious explosions at the home of iran's nuclear scientist. the head of iran atomic energy organization wounded by a car bomb. explosion at a secret missile base and head of a long range missile program is killed.

two weeks lateer a blast at uranium enrichment plan. satellite images show buildings that had be there for 15 years near the plant and they disappear after the november blast. the fact that there were reports of an explosion near the nuclear site warrants more scrutiny. when it comes to facility that used to be standing but is now gone. >> explosion at missile base killed the head of the iran missile program developing missiles to strike israel, the blast killed 17 members of iran's revolutionary guard corps. there are indications iran was testing a new solid fuel rocket. doing final preparation, loaded with the warhead and the fuel, it exploded. with it, it took the entire crew of the missile team with the top commander.

>> now with tension at an all-time high, the family of the f.b.i. agent robert levinson who went missing in iran in 2007 released a video they received a year ago from the captors. in it, he is pleading for help. u.s. central command has been honing milliontary clans lately concerned that israel will decide covert action is not enough. strike the nuclear program itself. >> one of russia opposition leaders predict saturday planned demonstrations will be the biggest protest in 20 years. sparked by allegation of election fraud. the issue put a strain on russian ties with the u.s. >> russian authorities are braced for demonstrations in dozen of cities tomorrow. expected to be larger than protest that follow sunday and may test the obama reset of the russia relations.

we want to have a collaboration when we can and we speak as we do in this case. >> secretary of state clinton says it undermines the russian people's confidence in the government as much as the election itself. vladimir putin blamed the protest on mrs. clinton herself. >> she stet tone for some of our personalities inside the country and gave them a signal. they heard the signal and with support from the state department started active work. >> the support putin cited is $9 million in aid that u.s. officials say is intended to promote democracy but a russian reporter says putin sees as meddling. on this day, press secretary jake carney defende defended thd aide. >> no one should be surprised we speak out and work for democracy around the world.

we think it's the right thing. >> u.s. officials say they are encouraged by the president medvedev promise to investigate the voter fraud allegation. however, medvedev is a lame duck. put sput the most popular politician in russia. wildly expected to be re-elected in march. he could serve six more terms. in medvedev's tenure he stayed in the background. many russians are ready for putin to reassert himself. >> people a demanding a renewed putin. putin is ready for such a renewal. >> despite putin's popularity, supporter weakened for the party united russia, which the critics call the party of swindlers and thieves. >> russian authorities granted a permit for 30,000 people to protest across the moscow river from kremlin saturday. facebook and other media posting suggest twice that many may show up. value of russian stock suggest

instability may grow. >> bret: still ahead -- fuzzy math. some state capitals across the country.

>> bret: stocks were up today. european markets reacted positive to news that 26 european countries are och to joining a new treaty and stabilizing the struggling economies. that leaves one very big dissenter. fox business network senior washington correspondent peter barnes has that story. >> the european leaders announced another plan at another summit to save themselveses from the debt crisis. skeptic res main. 26 countrys said they would support the latest deal and it could cap each country's

budget deficit at 3% except for recessions if countries don't hit the caps they would face the tougher automatic spending cuts. the e.u. members agree to loan the imf $270 billion it plans to turn around and lend back. all 17 countries that use the euro as a common currency commit to signing the new treaty. nine others expect to approve it. british bulldog said he would not go along because of the proposal to impose new limit on financial services companies that are big employers in britain. >> what i've done is make sure that britain interest is protected. there was a treaty on the table. treaty that would have meant a lot of loss of sovereignty for the countries around europe, changes in the european union. a lot of extra bureaucracy and lawmakerring. i didn't have sufficient safeguards for britain. >> plenty of analysts are still not sold. >> i think we have to bear in

mind that there have been 23 summits like euro group and the last 18 months. heads of state summit every four to six weeks or so. so, we have this very, very frequent cycle of summits. we have a lot of announcements and statements that come out. but we haven't seen any silver bullet. >> we are limping toward a solution. this isn't the big bazooka. it wasn't the big anything. >> 17 countries that use the euro hope to sign the new treaty by march. bret? >> bret: peter, thank you. a letter mom exploded today the tax collection office in italy. the director of the organization was slightly injured. police are investigating possible links to anarchist group that claimed responsible for bomb to bank official wednesday. negotiators at the u.n. climate talks in south africa are trying to get the u.s., china and india to agree to support a new treaty on fighting global warming. the european union said it

would extend the commitments to reduce the green house gases, only if all other countries accept new deal with binding obligations for everyone. activists today staged demonstration outside the main conference but were blocked from entering. if you think members of congress do not deserve to be re-elected you have plenty of company. that's next in grapevine. and is president obama a regular church goer? [ male announcer ] medicare...

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>> bret: now some fresh pickings from the political grapevine. democratic congressman rick larson fired three staff members who chronicled the on-the-job drinking exploits on twitter. the northwest daily marker a conservative blog first posted tweets and they detail things like wasting taxpayer money, watching music videos on youtube and lobbing insults at one calls their idiot boss. many use profanity, but here is a relatively tame one. "my coworker just took a shot of jack crotching behind my desk. we have unabashedly given up on about all things work-related." larson's office says the trio was fired an hour after congressman learned of the behavior. >> there is a new high in anti-incumbent sentiment. 76% of respondents said members of congress don't deserve to be releected. 20% said they should keep their jobs. 53% say their district

elective should be relechted. 39% want their rep to go. some conservative is taking issue with the "l.a. times" use of the word "regular." article discussing romney almost's service to his mormon religion says, "george w. bush is a born again christian. president obama has been a regular church goer for decades. jimmy carter taught sunday school." a 2009 "time" magazine article 11 months in the program wrote they have attended sunday services in washington three times this year. a 2010 politico article observed the "since arriving in washington as president obama has largely chosen not to attend public church services because of the possible disruptions his presence and the increase security would cause a congregation." politicians have always had a complicated relationship with mathematics. tonight we look at how some state government leaders talking about subjecting money

may be adding dollars to the public pay-out. dan springer breaking out a calculator from olympia, washington. >> a sprain from capitols. we're broke. >> a budget problem, a budget we cut by $10 billion in three years. >> washington governor gregoire numbers don't add up. she is adding cuts to the spending growth. but the spending went up. >> $10 million never existed. they are programs on paper that the state wanted to fund. >> washington state is far from alone. spending by all states is up 72% in ten years, climbing each and every year through the recession. thanks to the federal government. running up by huge deficit, 93% a decade.

total state expend sures hit record growth, fueled by stimulus money. >> the amount of money that we spend is a little bit more. >> but it is nowhere near what our revenue projections would have been. >> budget director marty brown says the government will never get smaller as the population grows and ages. there will only be more need for state services. some cuts have been made. to higher education and welfare. like subsidized child care and disability program until november paid maxwell mcguire $197 a month because of a slipped disincome his back. >> literally is, my life. people can't live on $1ed 97 a month anyway. >> the governor is pushing sales tax hike to avoid more cut to spending. republicans are opposed. >> they have to scare us, the people, to approving voting for tax increases. they do it by saying we have cut to the bone. they haven't. there is lots to cut. these are just people believing in big government. >> fiscal conservatives say

the only way to trim spending is cut the collective bar ganning right to state workers and reduce the benefits to all residents. a move proven elusive in wisconsin and ohio. in seattle, dan springer, fox news. >> a few moments ago police identified the man who shot a police officer and took his life on campus of virginia tech thursday. they say 22-year-old ross ashley was a student from nearby radford university. ballistics tests confirmed ashley and the police officer were killed with the same gun. there is still no word yet on a mote i. we will talk about the latest twist and turn in the 2012 race when the fox all-star join me after a quick time-out. p@?ñm ñoy÷h>óñó

we spent a good deal of time with congressman ryan. when the plan came out, i applauded it as an important step. this is a place where speaker gingrich and i disagree. he called this right wing

social engineering. i believe it's a very important step to protect medicare and to protect social security. we'll have to make changes like the ones paul ryan proposed. >> bret: governor romney in iowa today, speaking about speaker newt gingrich who is topping the polls there. the attacks not only from the candidate, but from surrogates have begun. here is one from congressman paul ron's son, senator rand paul, about newt gingrich. gingrich. >> bret: that is from senator rand paul advocating for his father. senator paul is up upcoming star of conservative ranks in the party. another star we talked to recently about newt gingrich.

>> could you see newt gingrich as a nominee? >> sure, absolutely. i have known speaker gingrich for a long time. i met him in my time at speaker of the white house when he came to florida to talk about his healthcare ideas. i always enjoy listening to him in the debate. he's very insight. one thing about gingrich you know no matter what question they ask he knows the answer to it or knows something about it. absolutely, sure. >> bret: senator rubio said he likely won't endorse before primary is over in his state. bring in the panel about the state of the race. charles lane for "washington post." liz marlantez for the christian science monitor. and syndicated columnist, charles krauthammer. charles, the thoughts on how this is developing? >> newt is on a rocket ride. romney decided he can't wait. he is not going to -- the conclusion of the romney camp he is not going to self-destruct, as the others who precedeed him will. especially with the iowa caucuses, a few weeks away, the time is short.

so they have gone all out on attack. they have ads now on the internet to attack newt directly. an interesting ad. i uses paul ryan, the quote he made when newt called it a medical wrangling, social engineering. they use a quote that ryan said at the time. friends like that, who needs the left. which is a rather cutting attack. the ad had commentaries, including me as it happens saying unsympathetic things about newt. i'm not sure that is a good strategy. the part of the electorate that romney is appealing needs to appeal to, is a part of the electorate that considers me and the other colleagues who are on that ad complete elitist, inside the beltway, cocktail sipping sellouts. that is what they say on a good day.

[ laughter ] what you want is people on the right trusts. ryan and other surrogates might have an effect. this is dangerous because there is a history of turning to those candidates with negativity. >> bret: the dichotomy between feeling of republicans here inside the beltway and capitol hill largely and feeling of what appears to be grass roots effort and in every poll voters who were swooning to newt gingrich. >> right. and as charles said, the question is to what extent are the attacks that are coming from the, quote/unquote, establishment, maybe going to help gingrich in the end? it has been a withering assault for last 48 hours and it will be a couple of days before we see it shake out in

terms of what impact this will have. but i was fascinated to see the sub text going on in the attacks on gingrich from romney surrogates and various other g.o.p. establishment types. a lot of which seems to be this guy is a little bit unhinged. you know, you have people coming forward using words like erratic, irrational. you know, they are really challenging him on the temperament issue. it's similar to attacks we saw against john mccain in the 2000 primary, which was an effective line of attack, where they got the voters thinking is this someone you want with the hands on the nuclear football? >> bret: at the same time, rush limbaugh has come out and said they told to us vote for last time. don't let them tell you who to vote for this time. it seems to have struck a chord with g.o.p. voters. >> absolutely. part of the reason gingrich has taken off is that he is emotional. he is reflecting the anger and

outrage a lot of republican grassroot voters feel toward obama. romney is a cool every character. that said his record in a military is a target-rich environment. there is a lot to work with there for romney and the other opponents. and things that gingrich has done and thing he said and money he has taken so forth. i think what they are probably also have in mind here is provoke him. to provoke newt to doing something to be counterproductive. >> bret: he gave an interview to a channel called the jewish channel in which he cast aspersions basically on the notion of palestinian statehood. take a listen. >> there was no palestine as a state. it's part of the ottoman empire. i think the we have had invented palestinian people. who are in fact arabs and historically part of the arab community. they had a chance to go many

places. variety of political reasons we suggestion stained a war against israel. >> bret: charles, you thoughts on that? >> historically he's right but at this point in later history it doesn't really matter. he is right that there never was a palestine under the ottoman, there was no palestine under british. when the arabs had control of what are now the palestinian territories, jordan had the west bank and egypt had guys for 20 years. none of them recognize palestinian state. they could have created overnight a palestinian state. but they annex the territories. then there wasn't a palestinian consciousness. they considered first of the 20th century, they were part of the larger arab world. as a result of the next 30 years there is a palestinian in national consciousness. now a fact invented or not, a

fact. the world has to respond. >> bret: that doesn't do him harm? >> it shows he knows his history. but the implication is he is against the palestinian state, the train long left that station. >> bret: liz, a lot of people focused on this battle between newt gingrich and mitt romney saying there could be a shoot the gap for another candidate. rick perry on the air all over the place trying to get conservatives mobilized. however, he had another editorial board meeting today with the "des moines register" where he said there were eight supreme court judges. there are nine supreme court justices. he was searching for one recently appointed, sonia sotomayor. here is what he said. >> when what you see is a point fire department my perspective inarguably activists judges, whether it was, um, not motamayor.

>> sotomayor? >> sotomayor. sotomayor. >> bret: it seems like these editorial boards have been tough spots. >> they should just say no cameras. exactly. >> bret: is that fair? is it wrong to focus on the moment? >> the problem for perry there are so many of them. if this were the first one we might be inclined to cut him a break. but there have been a lot. death by 1,000 cuts. i don't see how he really comes back from all of this. it's been pretty devastating series of gaffes. >> bret: chuck, any other shoot the gaffe for any other candidate? ron paul is doing well in iowa. >> ron paul is already up to 18% in the polls. right up there with gingrich and romney. no one is talking about it. he has a much better organization on the ground than gingrich does. of course, jon huntsman is out there attacking both of them. trying to make headway in new

hampshire. might be interesting, if gingrich really cleans up in iowa, to see if some of romney people in new hampshire, you know, at that point move over to huntsman. >> bret: we'll follow it. don't forget the next debate is thursday, december 15. 9:00 p.m. eastern. sioux city, iowa. you will be able to get instant analysis and participate in a live chat with the fox news contributors at foxnews.com/debate. next up, the friday lightning round, including attorney general eric holder's testimony about operation fast and furious.

>> bret: this week holder testimony won with 59% of the

vote. back with the panel. attorney general on capitol hill. chuck, from that testimony, what do we glean about fast and furious? what do we glean about attorney holder future of attorney general? >> i think it's secure. i think he is not, contrary to what you might think a political liability for the pest. he ifor -- liability for the president. he's very popular with the liberal base, the president is about shoring up. if the president had it in mind to unload eri eric holder e would have done at it long time ago with previous disagreement over trying terrorists in new york. >> bret: liz? >> i agree with that. i don't think he is going anywhere for the time being. i think it habit riz dontrelle of noise to require he step down. the political calculation is more if he were to resign it would get more attention. just like the fireworks at the hearing. >> bret: substantial. charles? >> he is an embarrassment. the biggest embarrassment is

documents dump last week where the justice department admitted the priest letter it had sent congress erroneous. republicans had to be careful of accuse him of perjury or lying. unless it can be shown the original mistake was intentional and deliberate, they ought to withhold any judgment about a charge that serious. he's okay until the latter is proven. >> bret: working up a big story about the attorney general on monday. next up is the keystone pipeline and tied with the payroll expense. democrats said don't do it. the president said i won't do it. warning the republicans not to do it. now republicans are doing it. what about this? >> it's smart politic on part of the republicans. they can cover any other

aspect of extension of the payroll tax. the rub is he introduced a bill in the house. pays it in a different way from administration. hold on to keystone issue. it is a winner. i can't imagine if president at the end of the day would veto a bill, raise taxes and kill keystone pipeline which will actually involve new jobs. if you give him a choice, i think he will have to cave. >> bret: we should point out that the administration puppeted because of the environmental studies they say until 2013. smart politics for republicans? >> i think so. i'm not sure it gets to the president's desk. reid and pelosi both were flat-out negative today. >> bret: they are willing to have senators up for re-election who might have tough votes. >> might be pressureed o on the jobs front. it is worth pointing out backing up what charles said,

obama caved on environmental versus jobs issues in the past. angered the left on this issue. epa smog issues he infuriated environmentalists. this is the kind of issue that he has gone against his base. i still am not sure i pass this through the senate. >> bret: punt coming? >> it's tit-for-tat because the payroll tax cut extension divided republicans. this thing, the republicans are firing back divides democrats. whether it divides them to get to 60 votes i'm unsure. >> bret: russia, elections challenged by the secretary of state clinton that the elections possibly had significant fraud and firing back is vladimir putin. what about this? >> it is a bad idea to steal an election and not be fully prepared for what might happen afterwards. putin got over confident here

and didn't realize a lot of the le cent trouble in arab and muslim world had to do with elections perceived to be stolen. iran, tunisia. now he may reap the same results. >> bret: liz? >> i was going to say i thought it was interesting that not only in our country but in other countries people will not going their way try to blame hillary clinton. there you go! decided that he might have a winner there. >> bret: so much for the reset, charles. >> exactly. attack, soviet attack that putin launched on the united states. speaking of the pro-democracy demonstrators, agents of the united states in the language of the old communist regime. it really makes a mockery of the administration patting itself on the back over the reset. it cut off the pols and czechs. he canceled it as a way to appease russians. what did he get? no help on iran no, help on

any of the other issues in supporting the syria up until now. now an old attack and revival of attacks on the united states. it's been a failure. >> bret: that is it for the panel. stay tuned for a followup to a grapevine classic this week.

>> bret: finally tonight, earlier in the week we brought you the story of several michigan counties using homeland security grant to buy snow cone machines. the shaved i could be used for injuries and they said there are other positives. >> local emergency management agencies can also use the snow cone machine as attractions at local events when they are trying to attract volunteers. >> yes. it is an attraction for volunteers. would you like to risk your life battling terrorists for no money? what if i offered you a snow cone? [ laughter ] [ applause ]